Choosing relationship predicts best variable-cost estimating, Managerial Accounting

Choose the relationship which best predicts the dependent variable

After exploring a diversity of relationships, you should select the one that can best be employed in predicting the dependent variable. Generally, this will be the relationship which best predicts the values of the dependent variable. The high correlation (relationship) among a potential independent variable and the dependent variable frequently indicates that the independent variable will be a good predictive tool. Though, you should reassure that the value of the independent variable is accessible in order for you to make timely estimates. When it is not, you might require considering other alternatives.

There are different techniques which can be used to estimate the cost function. Examples comprise:

•    Engineering technique
•    Account analysis
•    Regression analysis
•    High low technique
•    Time series analysis
•    Simulation analysis

Posted Date: 12/4/2012 7:36:02 AM | Location : United States







Related Discussions:- Choosing relationship predicts best variable-cost estimating, Assignment Help, Ask Question on Choosing relationship predicts best variable-cost estimating, Get Answer, Expert's Help, Choosing relationship predicts best variable-cost estimating Discussions

Write discussion on Choosing relationship predicts best variable-cost estimating
Your posts are moderated
Related Questions
Illustrate the concept of Cost The term cost indicates the amount of expenditure (actual or national) incurred on, or attributable to, a specified thing or thing or cost unit.

What is the correct formula for Post Cost?

what is Long term budgets Long term budgets: The budgets are prepared to depict long term planning of the business. The period of long term begets various between five to ten

Disadvantages of standard costing 1) Difficulty in setting standards: setting of standards in practice extremely difficult and complicated task. First it is not possible to f

Imposed Budgets In this approach to budgeting, top management prepares a budget with little or no help from operating personnel, which is then obligatory upon the employees who

Sources of Working Capital Finance Working capital finance may be classified in the subsequent: Spontaneous Source of Finance Finance that naturally arises in

Explain with examples five areas where linear programming can be applied in Managerial accounting

Anderson Nuclear Power Plant will be "mothballed" at the end of its useful life (approximately 20 years) at great expense. The expense recognition principle requires that expenses

Strategic Positioning The company must identify its strategic choices. This can be done from the firm’s objectives, which emanates from the firms mission. Strategies have to be

Problem: Fancy Foods Ltd uses a standard costing system to control its material and labour costs. The standard costs for January 2007 were as follows. Standard Costs Materi